Public Report

To: Development Services Committee

From: Paul D. Ralph, BES, RPP, MCIP, Commissioner, Development Services

Report Number: DS-15-171

Date of Report: September 9, 2015

Date of Meeting: September 14, 2015

Subject: Sector Analysis and Cluster Development Strategy Status Update

File: B-1500

1.0 Purpose

The purpose of this report is to provide a status update and overview of key economic development activities from the Sector Analysis and Cluster Development Strategy (“Cluster Strategy”).

Attachment 1 provides a status of the items from the Cluster Strategy.

2.0 Recommendation

That the Development Services Committee recommend to City Council:

That Report DS-15-171 dated September 9, 2015 concerning the Sector Analysis and Cluster Development Strategy status update be received for information.

3.0 Executive Summary

Advancing economic development is an important activity for the City. The Cluster Strategy adopted by Council on December 16, 2013, was developed in order to respond to changing demographic and economic trends and presented areas of focus, initiatives and actions.

The Cluster Strategy identified existing and emerging areas of opportunity to build and attract new businesses, develop talent and leverage inter-connected support systems needed to support sustainable sources of economic growth.

The Cluster Strategy identified five key sectors:

Advanced Manufacturing Health and Bioscience

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Energy Generation Multimodal Transportation and Logistics; and Information Technology

Significant work has been completed to develop these key sectors in Oshawa since the Cluster Strategy was adopted. Ongoing work with key partners and stakeholders will continue in the future.

4.0 Input From Other Sources

The following have been consulted in the preparation of this report:

Durham Workforce Authority Greater Oshawa Chamber of Commerce University of Ontario Institute of Technology (UOIT) Durham College (DC) Trent University Durham Region of Durham Economic Development and Tourism Department

5.0 Analysis

5.1 Background

On December 16, 2013, Council adopted the Cluster Strategy prepared by the City’s consultant, Millier Dickinson Blais.

The Cluster Strategy identified five key sectors:

Advanced Manufacturing Health and Bioscience Energy Generation Multimodal Transportation and Logistics; and Information Technology

The Cluster Strategy provided a target opportunity with specific action items for each of the key sectors. The action items identified key partners and stakeholders required to advance the plan. The action items are included in the Department’s annual work plan and are advanced through a number of initiatives including the following:

1. Investment Attraction activities 2. Business Retention and Expansion activities ( BR&E) 3. Developing a strong Entrepreneurship foundation 4. Marketing 5. Collaboration

Investment attraction activities include lead generation, responding to investment inquiries, coordinating and attending investment trade missions, attending trade shows, engaging site selection and corporate real estate executives, developers and hosting in-bound delegations.

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BR&E activities include business visitations or corporate calls, business interactions with companies and assistance with issues and challenges affecting business. BR&E activities are enhanced by working with key partners such as the Greater Oshawa Chamber of Commerce, education institutions, employment agencies as well as hosting events and seminars to provide relevant information and networking opportunities for business.

Entrepreneurship activities focus on fostering an environment that supports entrepreneurship and relies on developing and maintaining good relationships with key stakeholders such as the Business Advisory Centre Durham (BACD) and Spark Centre (Spark) to create an environment for entrepreneurs and new business start-ups to succeed.

Marketing activities focus on promoting Oshawa as a strong location for business investment. Traditional marketing channels such as publications, print ads, advertorials and written articles are complemented with electronic promotions including social media, website banner ads and videos to positively advocate and promote the City to a variety of audiences.

Collaboration activities focus on developing partnerships and working with our key stakeholders to reach common goals. Collaborative activities include working with the Durham Economic Development Partnership (DEDP), Durham Workforce Authority (DWA), Greater Oshawa Chamber of Commerce, Durham Nuclear Supply Chain round table, BACD, Spark, DC, UOIT, Trent University Durham and Lakeridge Health Education and Research Network (LHEARN) in addition to private sector stakeholders.

5.2 Key Accomplishments of the Cluster Strategy

Since the Cluster Strategy was adopted many accomplishments have been achieved including:

Sponsored and supported the Spark Centre for the development of incubation space “The Loft” to provide a responsive innovation ecosystem for entrepreneur development. The City has committed $150,000 over five years for the advancement of entrepreneurship in Downtown Oshawa.

Participated on the steering committee and completed Phases 1 and 2 of the Career Ladder Pilot Program with Durham Workforce Authority, Literacy Network of Durham Region, education and community stakeholders.

Hosted an information workshop for manufacturers to learn about export assistance, government funding programs and an online interactive networking tool for manufacturers.

Ongoing participation in the Ontario Automotive Mayors Caucus, a group of mayors and economic development offices that work with automotive companies (OEMs and suppliers), trade organizations, labour and government to advance the automotive sector in Ontario.

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Engaged a lead generation firm that connected with 218 companies in our key sectors from across the globe, resulting in 12 conference call meetings from companies in Europe, Latin America, U.S. and Canada.

Developed the Airport Business Plan in support of the Multimodal Transportation and Logistics Sector.

Participated with an Oshawa manufacturing company for the DEDP Pan Am Games initiative to host international delegates for a Familiarization Tour.

Sponsored Oshawa companies to attend the Ontario Centre of Excellence Discovery Day trade show in 2014 and 2015 with Spark Centre.

Met with 68 businesses through the Oshawa Connections, corporate calling program.

Responded to 97 leads in our key sectors.

Presented Oshawa’s competitive advantage to 34 site selectors.

Prepared and sent 128 follow up packages to leads generated from trade show activity.

The Cluster Strategy is gaining momentum and significant progress is being made. Key stakeholders such as the DWA are participating and advancing their own initiatives in support of the strategy. Meetings with UOIT and DC in support of the Cluster Strategy occur regularly.

New businesses have relocated and other businesses have made significant investments in the community including:

Fresh Del Monte Optech Stoeger Canada Triad Metals Aviation Unlimited Technology Start-up companies such as EV Fern and GDS Technologies General Motors of Canada - Canadian Engineering Centre and Equinox production

investment Minacs Port of Oshawa – Rail Spur and additional East Wharf berthing and cargo handling

space

The next phase of the Cluster Strategy will be the creation of a Sector Roundtable Advisory Group for each of the key sectors. These advisory groups will provide advice on industry trends, challenges and opportunities and help prioritize economic development activities to maximize efforts and will be comprised of business leaders, education and local workforce development agencies. Their valuable input will help to guide key activities for advancing the Cluster Strategy into the future.

Attachment 1 provides a status of the items from the Cluster Strategy.

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6.0 Financial Implications

There are no financial implications associated with the recommendation in this Report.

7.0 Relationship to the Oshawa Strategic Plan

The activities identified in this report help to advance the Economic Prosperity goal of the Oshawa Strategic Plan.

Cindy L. Symons-Milroy, Ec.D., CEcD, Director, Economic Development Services

Paul D. Ralph, BES, RPP, MCIP, Commissioner, Development Services

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DS-15-171 Attachment 1

Cluster Development Strategy

Cross-Sectoral Initiatives

Required Actions Status 1. Work with SPARK and ONE to build out local connections to the

emerging regional and provincial innovation ecosystem, and source resources available through ONE partners (e.g. OCE, SBECs, MaRS).

1.1 Develop an online and print client/business pathways tool, which identifies physical and virtual business supports available at each stage of company maturity in Durham Region/Ontario.

Complete

Website has small business resources as well as ongoing support to BACD, Spark Centre.

2. Based on best practice models, develop an Advanced Manufacturing Research Centre at UOIT that incorporates:

Advanced apprenticeship/training opportunities; Business and innovation-oriented consulting expertise; Knowledge-transfer capabilities; Manufacturing supply chain engagement structures; Flexible office and workshop spaces incorporating emerging

technologies (e.g. digital manufacturing lab) to support prototype and pilot-oriented fabrication;

Virtual and shared office services.

Ongoing

Post-secondary institutions have significant apprenticeship training programs and continue to develop new experiential learning opportunities for students.

Post-secondary institutions have flexible spaces and support adaptive and emerging technologies for students.

Funding was recently announced for the creation of the Centre for Advanced Research, Innovation and Entrepreneurship (CARIE).

3. Engage local companies through existing business survey initiatives to undertake a technology audit of the local business base, with the intent of identifying key opportunities for advanced technology integration.

Ongoing

Corporate calls continue to identify technology initiatives by companies.

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Required Actions Status 4. Develop an inventory of industry-academic research being conducted

at regional institutions and businesses, and market projects to potential partner firms/researchers (e.g. renewable energy, additive manufacturing).

Collaboration between economic development and the post-secondary institutions is ongoing and tracking industry-academic research is being conducted.

All 3 post-secondary institutions are recognized nationally for their research efforts.

5. Building on momentum of Ignite and Spark, bring together businesses and organizations from different sector councils to create technology-based interest groups that support cross-sectoral collaboration on technology applications and solutions.

Sector roundtable for each of the key sectors will be initiated in Q4 2015.

6. Encourage participation of business community in export initiatives and missions carried out by government agencies and industry organizations.

Ongoing

Exporting and Funding Tools Workshop was hosted in Oshawa for manufacturers. Ongoing information is provided to local manufacturers on missions and opportunities for exporting assistance.

7. Build an awareness of Oshawa’s accomplishments in knowledge-based industries through a broad-based marketing and communications initiative including:

Development of key company profiles; Participation in sector seminars/meetings; Attendance at trade shows and seminars; technology with local companies (e.g. OCE Discovery); Deployment of marketing materials and community profiles via

website, press releases, social media.

Ongoing

Business Testimonials continue to be collected and will be used in marketing materials and sector profiles.

Participated in (or was represented at) 8 trade shows.

Ec. Dev. has sponsored 3 companies to attend OCE Discovery Trade show.

Marketing materials such as Sector Profiles and Community Profile have been completed and are updated annually. Materials are online and are sent to key stakeholders and intermediaries.

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Advanced Manufacturing Initiatives

Required Actions Status 1. Develop strategies to support the integration and development of key

emerging technologies among the advanced manufacturing sector in areas such as digital manufacturing, advanced materials, robotics/automation, synthetic biology, or bio-manufacturing.

Strategies have been developed to encourage companies to work with our post-secondary institutions. Workshops and seminars have been hosted by the post-secondary institutions and local industry are encouraged to attend to learn more about the opportunities.

2. Develop investment attraction strategies around resource based industries that leverage existing strengths in automotive, machinery, and metals.

2.1 Consider trade show (e.g. Western Manufacturing Show, FABTECH, PDAC) participation with Canadian Manufacturers and Exporters (CME) and MEDTE.

Participated in (or was represented at) several trade shows including: Fabtech (Innovation and Technology Show),

Technology Show (Manufacturing Technology) and

NPE – International Plastics Showcase (Advanced Manufacturing).

Sector roundtable will help to develop specific investment attraction strategies.

3. Work with Durham Region on leveraging agricultural strengths into related bio-based opportunities in pharmaceuticals/nutraceuticals, biomaterials manufacturing.

3.1 Engage with major employers (e.g. GM) and institutional support (e.g. LHEARN, UOIT) on agriculture and bio-based product initiatives.

Anticipate identifying opportunities in 2016 as a result of Sector roundtables.

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Required Actions Status 4. Support the efforts of local and regional workforce development and

educational partners on youth engagement, including:

Generating awareness among youth of careers in manufacturing; Partnering with school boards to host a symposium for careers in

the manufacturing sector; Developing career information modules covering all operational

aspects of the manufacturing industry for schools; Developing connections to post-secondary co-op programs, to

encourage student recruitment.

Ongoing

Continue to work collaboratively with the Durham Workforce Authority to address youth unemployment and workforce training. Career Ladders Pilot project completed.

Connections have been made between Ec. Dev. and post-secondary institutions to highlight experiential learning programs – encouraging local companies to participate is ongoing.

5. Support the creation of a collaborative manufacturing network in Oshawa, that encourages innovation and emerging technology adoption (based on Waterloo MIN).

Complete

iMiN (interactive Manufacturing Information Network) was launched as a DEDP initiative. We continue to promote iMiN to industry through the Canadian Manufacturers and Exporters Association.

Health and Biosciences Initiatives

Required Actions Status 1. Incorporate Lakeridge Hospital and Lakeridge Health Education

Research Network (LHEARN) strategic visions into health and bioscience sector strategy, to create a sector hub that:

Leverages private sector partnerships to support business development;

Provides a focal point for health sector innovation; Fosters industry-academic relationships and joint research projects

in pharmaceuticals, medical devices, and primary care delivery; Strengthens the City’s corporate base.

Ongoing

Continue to support and promote the opportunities at LHEARN for industry, both local and external industries.

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Required Actions Status 2. Develop a health and bioinformatics initiative to attract and develop

companies in the field, building on:

Health informatics capabilities and programming at UOIT and Durham College;

UOIT corporate partnerships (e.g. IBM); Health IT applications/provisions at Lakeridge Health.

Ongoing

Continue to work with post- secondary institutions on attracting new industry based on research success in health and bioscience sector – specifically leveraging the Canada Research Chair opportunities in Health Informatics.

3. Leverage existing manufacturing, design, and development capabilities in local businesses to build out the medical device and equipment subsector.

3.1 Leverage bio-medical engineering programming provision at Durham College for start-ups, sector development, and talent attraction/retention.

3.2 Support the development of education and research capacity within college or UOIT focused on medical devices sector.

3.3 Coordinate medical device manufacturing marketing activities with advanced manufacturing sector activities.

Ongoing

Continue to support entrepreneurship development both on campuses and in Spark Centre Regional Innovation Centre. Spark Centre works directly with post-secondary institutions to assist identified student entrepreneurs. Identified medical design companies through strategic trade shows and present research advantages found in Oshawa. Was represented at two Medical Design and Manufacturing Trade Shows.

4. Work with key industry associations to develop a marketing and communications strategy to build awareness of Oshawa’s assets, accomplishments, and capabilities in health and biosciences, particularly in community health and wellness, pharmaceutical trials, informatics, and research and education.

To be referred to sector roundtables with key sectors to develop this marketing and communication strategy.

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Energy Generation Initiatives

Required Actions Status 1. Building on the efforts to develop the Advanced Manufacturing

Research Centre at UOIT, develop a strategy and business plan fornuclear and energy-related manufacturing and construction activitiesat the centre, including consideration of supply chain development,training, R&D, and business support needed.

Ongoing

Funding announced for the Centre for Advanced Research, Innovation and Entrepreneurship (CARIE). Working with UOIT and Durham College to advance initiatives.

2. Leverage commercialization channels of Energy Research Centre(ERC) at UOIT and existing supply chains of OPG to identify emergingenergy technologies to integrate into investment attraction and smallbusiness support programming.

Continue to promote the advantages of Energy Research Centre (ERC) and the Clean Energy Research Lab (CERL)

3. Work with existing corporate base (e.g. Enbridge, OPG, H2O Power)and supply chain development efforts (e.g. Organization of CanadianNuclear Industries) to identify supply chain gaps and strategies tosupport investment attraction, including opportunities around nuclearrefurbishment and natural gas construction/maintenance.

Ongoing

Continue to participate on the Nuclear Supply Chain round table. Further activities will be advanced as part of sector roundtables. Two clean energy companies have located in Oshawa – EV Fern and GDS Technologies.

4. Build on fledgling local sustainable energy sector through businessexpansion and investment attraction activities.

4.1 Work with organizations like Clean Tech North, OntarioSustainable Energy Association to develop awareness of Oshawa, and foster relationships in sector.

4.2 Work with SPARK and ERC to support new start-ups and grow businesses in emerging technology areas.

Ongoing

Ec. Dev. continues to encourage small start-ups to work with Spark Centre and the BACD.

Spark Centre opened a new student entrepreneurship contact centre at Durham College, Oshawa Campus.

The NEDO solar panel pilot project will commence and may provide the opportunity to attract more companies in the energy sector.

Participated in or was represented at PowerGen and WindPower trade shows.

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Multimodal Transportation and Logistics Initiatives

Required Actions Status 1. Engage with stakeholders in the GTA, GGH, and Eastern Ontario to

create a vision for a multimodal infrastructure hub, including an outline of required transportation and logistics infrastructure.

1.1 Engage with local business community to establish potential demand around existing assets (e.g. port, airport) and potential assets (e.g. FTZ-like policy areas).

1.2 Investigate the potential for development of a freight village/intermodal hub in Oshawa.

Ongoing

Continue to promote various modes of transportation available.

The completion of Highway 407 will advance opportunities in this sector.

Airport Business Plan and rail spur into the harbour are strategic successes in advancing this sector.

The Integrated Transportation Master Plan also supports the logistics and transportation industries.

Sector roundtable will assist with the demand analysis and business case for infrastructure.

2. Engage with local institutional and private sector assets to develop a technology-enabled logistics investment attraction and business support strategy for Oshawa.

Ongoing

3. Leverage region’s expected population growth to capitalize on retailer’s interests in distribution centres, and investigate participation at Retail Leaders Industry Association Conference (to target US companies).

To be referred to the sector roundtable to develop opportunities.

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Required Actions Status 4. Engage post-secondary institutions to investigate development of

more specialist logistics education programming at the diploma/Certificate level (Durham College) and undergraduate degree level (UOIT) that leverages current inter-disciplinary program strengths.

4.1 Engage post-secondary faculty to assess opportunities to build supply chain logistics research capacity.

4.2 Engage with local business community to support development of internship, co-op, and experiential learning opportunities focused on increasing the productivity and efficiency of transportation and logistics firms.

Ongoing

Durham College and UOIT have developed supply chain and logistics courses and co-operative learning opportunities. Businesses are encouraged to participate and create experiential learning opportunities for students.

5. Engage with supply chain logistics groups to develop awareness of Oshawa as a potential logistics hub.

To be referred to sector roundtable to identify opportunities in Q4 2015.

Information Technology Initiatives

Required Actions Status 1. Identify and promote grassroots activities in IT growth areas across

Durham Region to Oshawa-based companies, entrepreneurs, and students.

Ongoing

2. Support downtown revitalization efforts with the intent of supporting place-making initiatives meant to attract and retain knowledge-based workers.

Ongoing

CORE 21 and The Loft with Spark Centre are key accomplishments in advancing this initiative.

3. Build partnerships with innovative local companies to identify and attract potential collaborative industry or academic partners, and investors.

Ongoing

4. Ensure advanced manufacturing strategic programming integrates the use of IT as a means of increasing productivity and competitiveness, or attracting new and high-value companies.

Ongoing through Corporate Calling program.

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Required Actions Status 5. Target information security and big data companies focused on

servicing advanced manufacturing, health and biosciences, energy, and logistics companies.

Continue to promote big data and IT security for lead generation activities.

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